Divide the spot index price of Shanghai copper (the average price of Shanghai metal mesh or Yangtze nonferrous metals) by the price of Lun copper (usually the LME quotation at the close of three o'clock in the afternoon or the LME spot quotation of the day).

In recent two years, the lowest ratio is 8. 1, and the highest ratio is 9.7.

If the ratio is above 9.3, the import will be profitable.

Copper import cost =(LME three-month price+corresponding monthly premium+onshore premium) × exchange rate× (1+value-added tax rate )× (1+tariff rate)+miscellaneous fees = (7800+72+76 )× 7.9952× (65438+).

Cross-market arbitrage analysis focuses on two major points: the ratio of the two cities (import profit and loss) and the rise.

Waterproof structure. Ratio is the core of cross-market arbitrage, but the premium structure of the two cities also has a very important impact on the success or failure of arbitrage, which determines the profit and loss of the extension.

I hope it helps you. Please send a message if you have any questions.